m3Submitted by Morris Hubbartt:

Fundamentally, the US dollar is at great risk. Even if politicians make headway in spending cuts in the coming months, it won’t stop the debt from growing.   According to CNS news, about 11,000 people sign up for the Supplemental Assistance Nutrition Program (food stamps) every day. As the United States heads back into recession, maintaining a social net will be priority number one.

So, leaders can attempt to make progress, but the debt is now over $16.5 trillion.  Unfunded liabilities are more than seven times that amount.  A debased currency or much higher interest rates are the government’s ultimate choice.

The fundamental issues that are negative for the dollar are also very bullish for gold.  With the long-term trend of gold being up, this enormous symmetrical triangle is likely to breakout to the upside.
A symmetrical triangle is usually formed during a consolidation period. In the case of gold, the consolidation has gone on now for nearly a year and half. The larger the base, the greater the rise out of the bull market consolidation pattern. 

German silver shortageLast month we posted a report (which subsequently went viral) from an Apple contractor who claimed that Apple has delayed production on the new 27″ iMacs due to an industrial silver shortage in China.

New signs of an extremely tight wholesale physical silver market have now emerged, as a first-hand account has revealed that one of the largest and most famous German automakers is hoarding massive amounts of physical silver inside one of the most secure vaults in Zurich, Switzerland.

Financial writer Byron King, who viewed the massive German automaker’s silver hoard in Zurich stated:
Why does the German company store dozens of pallets of silver in a secure vault deep in the mountains of Switzerland? It’s simple, really. So that the metal is there when the car maker needs it. As one purchasing manager explained later in my travels, “For some metals, like silver, there’s no such thing as ‘just in time’ delivery anymore.
In other words, this German company buys silver when it’s available. In fact, the company buys as much as it can acquire. Then it stores and stockpiles the material in a vault in the mountains of Switzerland, right next to the pope’s gold.

Ted Butler’s long anticipated panic buying & stockpiling of physical silver by industrial users appears to be gaining momentum.

deja vuSubmitted by SD reader BH:

Do you remember 2008?  …and what led up to it?  Do you especially remember all of the assurances made that “everything would be OK”?
It smells again like 2008 but this time much MUCH worse.  Consumer debt levels have barely subsided from those back in 2008.  Taxes are higher and now biting which is a definite factor suppressing retail sales.  Gasoline prices are higher and unless you own oil stocks this is surely no benefit.  Derivatives outstanding are higher than they were yet “banks say” they are less leveraged (how can this be?).

NOTHING has changed since 2008.  Many ratios, balance sheets and financial standings are far worse now than entering that year, a crisis now can no longer be jawboned away by “don’t worry, we are the government and won’t let anything bad happen”.  This is the classic reverse “Boy who cried wolf”.  Credibility of the puppet-masters has been stained and lost, nothing could be worse in today’s monetary system.  Credibility”, trust, CONFIDENCE! was the only thing that held the system together during the dark days of 2008-09, and it’s waning fast.  “Confidence” is also the key factor of “value” behind your currency…no matter where you live or who your central bank is.

After consolidating throughout the overnight Asian and London session, the latest COMEX open raid has finally achieved the cartel’s target in silver, with $30 broken to the downside as silver was smashed to $29.84. 
Gold has also been hit on the COMEX open, down another $40 to $1596!

The legendary Jim Sinclair states that this is the last significant correction prior to gold’s move to $3,500. 

*Update: 2nd wave of smash now in progress, with silver down to $29.67

RJO’s Senior Commodities Analyst Phillip Streible (who last month made silver his #1 commodities pick for 2013, stating that silver would explode to the upside in 2013 on a short covering rally) was back on Bloomberg TV, discussing how China’s hot inflation numbers might impact gold, silver, and copper.   Streible doesn’t expect higher than expected inflation numbers out of China to slow their stimulus whatsoever, and believes that copper, silver, gold, platinum, and palladium will all see substantial rallies due to China’s continued growth as well as unending QE.

We’re not seeing silver drop below $30, we’re not seeing gold drop before $1650.  I think the support levels are in, I think we’re going to start to build to the upside, and I think that Quantitative Easing is going to be the fuel behind it

Streible’s full interview is below:

gold noteBy Jim Willie, GoldenJackass.com

The Competing Currency War has reached a new elevated fever pitch, with the major central banks delivering powerful damage to each other while defending themselves. The unintended consequences have been a predictable unfolding of events to the sound money gold crowd, with years of warning and even a label given to the conflict.
It comes as an unwelcome surprise to the mainstream sheeple crowd, still entangled in the paper wealth corner. The process continues, the pathogenesis relentless as paper securities erode in value.

The world is slowly coming to the realization that only a Gold Standard can cure the world of its financial cancer from metastasized paper insecurities. The contact of Silver will cleanse the hand that has held paper since 1971, when the era of modern chronic unsolvable financial crisis was born. That is, unsolvable without a primary role for Gold itself, the despised stable metal. Gold is the ultimate currency.

So the Jackass call is that 2013 will see the US Dollar finally isolated and put in a position for rejection.

Another day another waterfall decline for silver as the metal just dropped 70 vertically to $30.37 as 90 million ounces of paper silver were dumped on the market as the cartel attempts to induce a $20 handle for silver.

*Update: 2nd wave in progress as cartel pushes for $29 handle in silver, 4 year uptrend line since 2008 at $30.50 has been broken to the downside.

too big to jailRollingStone’s Matt Taibbi who has uncovered more rampant fraud at JP Morgan and Goldman than the rest of the entire financial MSM combined joins Bill Moyers to discuss the continuing lack of accountability for “too big to fail” banks which continue to break laws and act unethically because they know they can get away with it.
Taibbi refers specifically to the government’s recent settlement with HSBC — “a serial offender on the money laundering score” — who merely had to pay a big fine for shocking offenses, including, Taibbi says, laundering money for both drug cartels and terrorist-connected banks in the Middle East.

Taibbi also expresses his concern over Obama appointees — including Lanny Breuer and Mary Jo White — who go from working on behalf of major banks in the private sector to policing them in the public sector.

The rule of law isn’t really the rule of law if it doesn’t apply equally to everybody. If you’re going to put somebody in jail for having a joint in his pocket, you can’t let higher ranking HSBC officials off for laundering $800 million for the worst drug dealers in the entire world,” Taibbi tells Bill. “Eventually it eats away at the very fabric of society.

Taibbi’s full MUST WATCH interview is below:

BenedictITCCS.org is reporting that Joseph Ratzinger resigned as Pope this week as a result of pending charges for criminal conspiracy to aid and protect child torture and trafficking.  The report reveals that the organization has procured an arrest warrant from an unnamed European nation against Ratzinger, and will move to place a commercial lien against all the financial assets of Vatican, Inc effective Easter Sunday, 3/31/13 via international law and the Rome Statute of the International Criminal Court.

The ITCCS (International Tribunal into Crimes of Church & State) states that it will proceed with the arrest warrant for Ratzinger even after he vacated the office of Pope, and will also pursue charges against Ratzinger’s replacement as head of the Vatican.

While SD’s short research into ITCCS seems to indicate that ITCCS appears to be a small, rather unknown operation rather than a respected international tribunal (and we will await confirmation of the arrest warrant and charges from the un-named European before making too much of these charges),  we would like to remind readers that JP Morgan was the Vatican’s private bank, and was implicated in the Vatican money laundering scandal this past summer.  

casino-girlIn his latest update, Greg Mannarino states that the US is now the laughing stock of the world as history’s biggest debtor nation. 
He states that the entire system is based on the acquisition of debt into infinity, and that the moment we stop borrowing it is over and the system will collapse.   This is really a simple transfer of wealth, and the actual transfer of wealth will occur when interest rates begin to spike.

Mannarino states it is time to bet against the debt, and become your own central bank by holding your assets in physical precious metals in your own possession. 

Jim Sinclair has long stated that fortunes will be made shorting Treasuries once the bubble bursts.  Is it finally time to bet against US debt?

Mannarino’s full update is below:

 

god's workerGod’s workers at the Vampire Squid endured a PR nightmare last year after a former director wrote an op-ed in the NYT claiming that Goldman routinely traded against their own clients, and referred to their clients internally as muppets.
While Muppet-Gate has passed for Goldman, it appears that the business of intentionally fleecing clients continues as usual, as Goldman issued its clients Monday a recommendation to sell positions in Heinz (HNZ) on risk of continued top line disappointment, which today (only 3 days later) was acquired by Warren Buffett’s Berkshire at a 20% premium to the last share price

God’s worker indeed.

Yra HarrisLegendary trader Yra Harris (often quoted by Jim Sinclair) says, “The currency wars are real, and the game is on.” Harris says the global currency war is what helped Volkswagen gain market share in the last few years. So, what is Japan doing? It is cutting the value of its currency so Toyota will gain market share.

The currency war is also what’s been driving gold higher. Harris says, “Is gold in a bull market? Absolutely. Is gold a tired bull for the moment? Absolutely. . . . I think you’d be crazy to sell because there are so many variables of uncertainty.” Harris goes on to predict, “What do I think is the most explosive event for gold? It is the day Draghi (President of the ECB) can no longer jawbone quantitative easing. He actually has to step up to the plate.” Harris is counting on the Fed to continue to pump out dollars. He says, “I can go to sleep at night and know one thing–the Fed will not allow deflation.” The reason is simple, according to Harris, “We live on debt in this society. Debt based societies cannot absorb a deflationary spiral.” Join Greg Hunter as he goes One-on-One with analyst and trader Yra Harris.

According to the World Gold Council’s Q4 2012 report issued today, Global gold demand in Q4 2012 reached 1,195.9 tonnes, up 4% from Q4 2011. In value terms gold demand for the quarter was 6% higher year-on-year at $66.2bn marking the highest ever Q4 total and driving annual demand in 2012 to a record value of US$236.4bn.

• Whilst Indian full year demand was down 12% on the previous year, the market performed strongly in the final quarter with total demand at 261.9t, an increase of 41% on the same period last year.
• Chinese demand was flat year-on–year, reflecting the impact of economic slowdown. However looking at Q4, total demand was up 1% on the previous quarter to 202.5t. Jewellery demand was137.0t up 1% on Q4 2011 and investment demand was 65.5t, up 2% on the previous year.
• Central bank buying for the full year rose by 17% compared to 2011, totaling 534.6t, the highest level since 1964. Central bank purchases stood at 145.0t in Q4, up 29% on the corresponding quarter in the previous year, making this the eighth consecutive quarter in which central banks have been net purchasers of gold.

Ron Paul was on Bloomberg’s Lunch Money discussing the developing currency wars.  Paul states that the currency wars have been ongoing for decades, but they are now gearing up, but that government’s always compete to devalue their fiat currencies.

Paul informs the Bloomberg host that the loss in purchasing power from currency devaluation in a currency war devastates the middle class, and cancels out any slight benefit that you might be getting temporarily in terms of trade.

Paul also states that one day soon people around the world will reject all fiat currencies, and we will move into an age where people want to buy hard assets, and that this has already started with real estate, gold, & silver

Paul’s full interview on the coming economic collapse is below:

Chaz Obama

Image: AP

In 2012, a unified, co-ordinated effort among Americans (including numerous large corporations) successfully fought off the draconian CISPA legislation. 
Der Führer has just taken matters into his own hands, signing an Executive Order titled Improving Critical Infrastructure Cybersecurity.

As if anyone didn’t see this coming- the agency charged by Obama with regulating the security of critical infrastructure: The DHS.

Coming soon to a laptop or desktop in your office/den: body cavity searches and full body scans.

Full executive order is below:

stare bastards in the eye SinclairWith sentiment among the precious metals community remaining downright terrible (to see just how bearish the current sentiment is, peruse the reader comments on today’s silver chart of the day) legendary gold trader Jim Sinclair continued his efforts tonight to convince PM investors to sit tight and be right.
Sinclair again informs readers that the gold boys (bullion bankers) will soon flip their naked short positions net long, propelling gold to $3,500 an ounces (Doc’s note: and silver likely to $90).

Sinclair states that legendary 10+ baggers will be seen in the mining shares sector, and that precious metals investors must stare the bastards in the eye and defend themselves- by simply being right and sitting tight.

For the first time ever, the legendary gold trader has advised metals investors to go ALL-IN on further price weakness!

Sinclair: Stare the Bastards in the Eye and Defend Yourself!

platinumAs most of our readers are aware, our friends at Sprott Asset Management recently launched physical platinum and palladium bullion trusts out of expectations that the metals will see substantial gains over the next decade over major supply issues.

With both platinum & palladium soaring over the past few weeks, Sprott has released a MUST READ summary of the platinum and palladium markets (Sprott compares both metals to the uranium market in 2003), and why they believe the physical metal will outperform the mining companies.

Despite being long-time precious metals enthusiasts and active investors in gold and silver, we did not focus on “the other precious metals”, platinum or palladium, until very recently. Our interest in the space was ignited by a client’s request to assess investment opportunities in the debt and equity of Platinum Group Metal (PGM) mining companies – an exercise that came up almost completely dry. As long-time resource equity investors, we are familiar with the mining industry’s supply/demand cyclicality and the impact it has on commodity prices. Looking more closely at the PGM miners, the platinum and palladium industry reminds us of the uranium industry back in 2003. Like uranium, platinum and palladium are crucial to a number of important industrial applications where demand for them is relatively inelastic to price. And like uranium in 2003, palladium is also marked by an opaque, but rapidly diminishing foreign supply stockpile, which had previously balanced out the market and effectively capped the price.

Mark Dice, the man who unsuccessfully attempted to sell a Gold Maple for $25, and last week unsuccessfully attempted to give away a Gold Maple to anyone who could tell him the spot price of gold +/- 25% is back, this time standing in front of an Encinitas, California Coin Shop, attempting to sell US Silver Eagles for .99. 

After repeatedly offering to sell Silver Eagles for .99 over spot in any quantity (even offering to have the Coin Shop verify the coin’s authenticity), Dice fails once again to entice a single American to trade a $1 Federal Reserve note for an ounce of .999 silver.  
Notice we said a single American, as for the first time in any of Dice’s video’s, someone finally takes him up on his offer of (nearly) free phyzz.
The supreme irony?  The man who takes Dice up on his offer (much to his chagrin) is a European tourist.

The unbelievable full clip is below:

By SD Contributor AGXIIK:

The trade between Japan and Europe and China and Europe will be hit very hard when Europe can’t afford goods from China and Japan.  The east will suffer badly as devaluations won’t overcome the recessions and depressions in Europe.

These are real and dangerous tipping points that won’t hold back very long. The people in Italy, Greece and Spain are near the breaking point.  I doubt if the Fed will have enough money to bail out Europe when Benny is spending all his political capital in bailing out the US, although I would not be surprised if the Fed doesn’t give it a try, nonetheless.   
If we thought 2012 was the year of the epic failure, it may have been just a warmup act to 2013.